asked 220k views
0 votes
Under what conditions do consumers bear the full burden of an excise tax levied on

the producer?

asked
User Dan Li
by
8.6k points

2 Answers

4 votes

If demand is more inelastic than supply, consumers bear most of the tax burden.

khanacademyorg

gas tax is an excise tax

Inelastic demand means that when the price goes up or down, consumers' buying habits stay about the same when the price goes down, consumers' buying habits also remain unchanged

true for things people really need and have no choice but to spend more like co pays for doctors visits

scholarships are often taxed

investopedia

answered
User Max Mazur
by
8.3k points
5 votes

Answer:

If demand is more inelastic than supply, consumers bear most of the tax burden.

answered
User ZioBudda
by
8.2k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.